SWOT Analysis of Johnson & Johnson

Posted by mbalectures | Posted in SWOT Analysis | 12,733 views | Posted on 01-11-2010 | Print This Post

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Johnson & Johnson is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer. Johnson & Johnson was founded in 1886 and the company is headquartered in New Brunswick, New Jersey. Some of the important products of the company are Tylenol, Motrin, Johnson’s baby oil, Visine, Bengay, Neutrogena skin care products and Band-Aid bandages. The company employees approximately 114,000 people worldwide. The SWOT Analysis of Johnson & Johnson is given below:

 

Strengths

 

  1. Johnson & Johnson is one of the world’s few companies having presence before the 20 century.
    It has higher customer satisfaction and strong R&D facilities.
  2. The company has achieved economies of scale and economies of scope.
  3. Johnson & Johnson is recognized for its corporate repute, strong customer base, brand loyalty and brand image.
  4. Johnson & Johnson has strong global presence by having 250 subsidiary companies with operations in more than 57 countries.
  5. The company products are sold in more than 175 countries and it had global pharmaceutical revenues of $24.6 billion for the FY 2008.
  6. Johnson & Johnson has successfully differentiated itself from competitors.
  7. Johnson & Johnson is a vastly diversified company by having enormous variety of products in medical devices, pharmaceutical, and consumer packaged goods.
  8. Johnson & Johnson has more than 29,925 internet domains over most of the big Internet & technology companies.

 

 

Weaknesses

 

  1. On April 30, 2010, one of the subsidiaries of J& J willingly recalled 43 OTC children’s medicines, including Benadr, Tylenol Plus, Tylenol, Mortrin and Zyrtec.
  2. In 2010, U.S. Department of Justice filed suit against Johnson & Johnson for illegally marketing its drugs throughout Omnicare (a firm that allot medicines to nursing homes counting patients with dementia).
  3. Johnson and Johnson’s key products demand is shrinking; several of these products were branded and have been substituted by common programmes at the finish of copyright.
  4. Johnson & Johnson is wasting a lot of money and time during the hunt for information. For example, workers are wasting a lot of time replying cyclical enquiries, rather than moving out value-added actions.
  5. Johnson & Johnson is facing strong pressure to reduce prices and preserve copyright expirations in order to make sure that nonspecific programs are reorganized within decisive lane activities.
  6. The company has high dependence on the revenue of Risperdal and CNS.

 

 

Opportunities

 

  1. The Acquisition of Pfizer by Johnson & Johnson; will present the company to support growth for the Johnson & Johnson.
  2. Johnson & Johnson has opportunity to increase market share by product development and product innovation globally.
  3. Increase global presence by expanding globally through the joint ventures and acquisitions.
  4. Expansion and innovation into diagnostics and medical devices will grants new markets to grow.
  5. Financial economic recovery will boost the income of consumers which will ultimately increase the company revenues.
  6. Assimilate current acquisitions of different companies. 

 

 

Threats

 

  1. This industry may be on the restore, but its revival could be slowed down by heavy-handed regulation and more hurting in the housing market, amongst other things.
  2. Johnson & Johnson has strong global competitors. These competitors provide alternative and substitute products at lower prices.
  3. Johnson & Johnson is in the mature market with very low market growth rate.
  4. Major pharmaceutical companies are facing strong competition for the generics markets from the local players.
  5. Bio-technological expansion will potentially move the established pharmaceutical process out of the market in the future.
  6. All the global players are facing strong regulations in the pharmaceutical industry by different respective countries.
  7. Private label has increased the nonspecific drugs growth.

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